{"product_id":"when-insurers-go-bust-guillaume-plantin-9780691170985","title":"When Insurers Go Bust: An Economic Analysis of the Role and Design of Prudential Regulation","description":"\u003cp\u003eIn the 1990s, large insurance companies failed in virtually every major market, prompting a fierce and ongoing debate about how to better protect policyholders. Drawing lessons from the failures of four insurance companies, \u003ci\u003eWhen Insurers Go Bust\u003c\/i\u003e dramatically advances this debate by arguing that the current approach to insurance regulation should be replaced with mechanisms that replicate the governance of non-financial firms. \u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e Rather than immediately addressing the minutiae of supervision, Guillaume Plantin and Jean-Charles Rochet first identify a fundamental economic rationale for supervising the solvency of insurance companies: policyholders are the \"bankers\" of insurance companies. But because policyholders are too dispersed to effectively monitor insurers, it might be efficient to delegate monitoring to an institution--a prudential authority. Applying recent developments in corporate finance theory and the economic theory of organizations, the authors describe in practical terms how such authorities could be created and given the incentives to behave exactly like bankers behave toward borrowers, as \"tough\" claimholders.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e Guillaume Plantin,Jean-Charles Rochet\u003cbr\u003e\u003cb\u003eISBN-10:\u003c\/b\u003e 0691170983\u003cbr\u003e\u003cb\u003eISBN-13:\u003c\/b\u003e 9780691170985\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Princeton University Press\u003cbr\u003e\u003cb\u003eLanguage:\u003c\/b\u003e English\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 06\/28\/2016\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 112\u003cbr\u003e\u003cb\u003eFormat:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.33lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 8.50h x 5.50w x 0.27d","brand":"Guillaume Plantin","offers":[{"title":"Paperback","offer_id":48799391383807,"sku":"9780691170985","price":27.95,"currency_code":"USD","in_stock":true}],"url":"https:\/\/www.whiterainbookhouse.com\/products\/when-insurers-go-bust-guillaume-plantin-9780691170985","provider":"WR Book House","version":"1.0","type":"link"}